Debt/equity: “interest” held by “ultimate recipient” – TD 2015/3

18 Mar 2015

On 18 March 2015 the ATO issued a taxation determination which deals with the question whether the reference to “the interest” as it appears in the phrase at the end of s 974-80(2) of the Income Tax Assessment Act 1997 (Cth) is a reference to the interest held by the “ultimate recipient”: Taxation Determination TD 2015/3 (18 March 2015).

The determination says yes: “the interest” referred to in the phrase at the end of s 974-80(2) is the interest held by the “ultimate recipient” and not the interest held by the “connected entity”.